Matt

Hi, I sold a flat in Germany and paid German income tax on it. I want to rely on the DTA UK-Germany and not been taxed twice. The DTA covers CGT and income tax. In Germany the Capital Gain is assessed as part of Income Tax (and not separately as Capital Gain) and the total income results in an overall income tax rate which is applied to the Capital Gain. This results in a much higher tax rate for the gain compared to the UK. Now I also have other employment income which drives up the tax rate in Germany, How do I split the tax paid for FTCR between the UK CGT return SA108 and Employment income SA102 and the corresponding foreign notes SA106? Thanks!

Hi there, but if I already do self assessment returns I can wait until 31.01.2025 can't I? Also for a FCTR claim must the foreign tax been due as filed or already been paid? Thanks.

Dear team, I moved to the UK in 2021 and I am UK resident taxed on the arising basis. I am planning to sell a buy-to-let property in Germany in November 2023. The UK / Germany DTA says in Article 6 Germany may tax this income (ie the gain on sale). In Germany this is taxed as "sonstige Einkünfte" which is related to income tax. I will declare this in my German tax return for 2023 in September 2024 and will pay the tax due. I understand in the UK I am taxed on my worldwide income and have to report this as a capital gain in my 2023_24 self assessment (SA 106 and SA108). The chargeable gain is re-calculated under UK tax law. I can claim FCTR although the tax paid in Germany was income tax and the tax payable in the UK would be capital gains tax. However, it is likely I have to pay more tax in Germany than in the UK so should have a zero tax liability after applying FCTR. I still would have to report this to HMRC by 31.01.2025. Is this the correct approach to declare the capital gain in particular I do not have to report it earlier? Thanks! Matt